Kentucky tax revenues in the fiscal year ending this summer were just shy of what was needed to trigger a half-percent cut to the state's individual income tax rate in the 2027 calendar year.

An Aug. 15 letter from State Budget Director John Hicks to the Republican chairmen of legislative budget committees informed them the state's General Fund revenue fell $7.5 million short of what was needed to trigger cutting the tax rate from 3.5% to 3% in 2027.

Kentucky hit the tax cut trigger last summer , which will lower the current income tax rate of 4% down to 3.5% at the beginning of next year .

In the 2023 fiscal year, the trigger was missed by a much larger margin than this year, falling $435 million short.

The Kentucky General Assembly created the complicated tax cut mechanism in 2022 ,

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